Advertisement

Weak US futures performance worsens already negative sentiment

Reading Time:2 minutes
Why you can trust SCMP
0

All eyes were on China Mobile yesterday, which dragged the Hong Kong market lower in thin trade in the absence of pointers from Wall Street.

The Hang Seng Index fell 1.84 per cent or 202.56 points, sinking below 11,000 to end the day at 10,797.69.

China Mobile accounted for 81.06 points of the index's losses as it slumped 5.04 per cent to HK$22.50, its lowest close since October 22.

Trade was thin at only $5.33 billion as Wall Street - closed for a holiday on Monday - offered no guidance. However, with both Dow Jones Industrial Average and Nasdaq Stock Market futures firmly in the red, the overall tone was negative even before the open, brokers said.

Fears of falling earnings growth at China Mobile were given added weight when an unconfirmed mainland report said mobile operators would be allowed to set some of their own pricing plans, triggering fears of a price war.

China Unicom also suffered on the news, falling 3.18 per cent to $7.60.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2-3x faster
1.1x
220 WPM
Slow
Normal
Fast
1.1x